Sponsored by: The financial security your employees value | Arkansas Business News

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Offering health care coverage to employees is one of the most important decisions an employer or CEO can make. Not only does it allow you to provide peace of mind to employees, but it gives you a competitive advantage in hiring and retaining the best talent you need to succeed. However, health care coverage may not be sufficient. Employers can provide an extra layer of financial security by offering supplemental life and disability insurance that complements health coverage. Additional coverage can be paid for by an employer, employee, or co-pay form.

Complementary Benefits – Because the unexpected happens

Most Americans believe that injury or disability will never happen — but it can. Social Security Administration statistics show that one in four 20-year-olds today will become disabled before they reach the age of 67. Accidents, injuries, and illnesses can happen at any time, and the costs associated with an unexpected hospital stay can add up quickly.

“Often we underestimate how quickly expenses can increase — from lost time at work and travel costs to deductibles and co-costs,” said Tom Davenport, senior director of product management at USable Life. Plus, a serious condition may reach the limits of employee health coverage. The additional tier helps of financial protection when employees need it most, and cash benefits can be used for anything, allowing the employee to recover and recover.”

Supplemental insurance — accident and critical illness coverage and hospital indemnity — is an affordable way for employers to offer additional coverage and financial security beyond traditional health benefits. “Supplementary benefits complement health coverage by covering additional expenses in the event of a covered accident, serious illness, or hospitalization,” Davenport said. This type of coverage provides employees with cash benefits to pay for medical and non-medical expenses. From subscriptions and discounts to travel and childcare, the choice is theirs.

More and more, employers are seeing the benefits of offering supplemental coverage, such as accident insurance. This coverage is affordable, and in addition to paying benefits directly to employees, some plans may include a covered preventive care health benefit — a supplement to medical coverage.

Why is life insurance important

According to a 2021 study by the Life Insurance and Market Research Association (LIMRA), only 52% of those surveyed reported that they own life insurance, down from 63% in 2011. The report also noted that 60% of Americans do not purchase life insurance. Life because they think it is expensive. However, when you offer life insurance to your employees, they reap the benefits of group deductions, making it more affordable. Here are some of the reasons why it is important to have life insurance:

  1. family security. If an individual supports a spouse, children, or elderly parents, they need life insurance. According to LIMRA, 42% of Americans say their family will experience financial hardship within six months if the salaried worker dies unexpectedly — 25% will experience financial hardship within a month.
  2. Unexpected expenses. Life insurance can help offset end-of-life expenses. Average funeral costs today range from $7,000 to $10,000. Inheritance and inheritance taxes can also be expensive. Life insurance can pay for these costs, relieving loved ones.
  3. Business security. If the individual is self-employed or has a family-owned business, a life insurance policy can help maintain the business once that individual is gone—helping protect against economic loss that may result from the death of the owner or principal employee.
  4. Outstanding debt. If an individual has accumulated significant student loan debt or other significant debt, life insurance benefits can pay those bills so that the survivors do not incur that debt.

Two types of disability insurance

A short-term disability is designed to fill in the gaps caused by an illness or injury that leaves an employee out of work for weeks up to six months. Long-term disability insurance provides financial support or income replacement if recovery from an injury or illness prevents an employee from working for more than six months. The amount of coverage required depends on the amount of income that must be replaced while the employee cannot work. Long-term disability insurance benefits are, on average, about 60% of an individual’s pre-tax income. Short-term disability benefits can start during the long-term disability waiting period, so there is no protection gap. An employer or employee may fund disability insurance on a voluntary basis.

Davenport said, “When I was diagnosed with a rare disease that caused severe illness, USable Life was there for me with short- and long-term disability insurance. Without disability insurance for the year I couldn’t work, my family would have been financially exhausted. Paycheck Protection Insurance Deficits are invaluable when employees need them.”

Strategic use of benefits

A survey by the Society for Human Resource Management on the Strategic Use of Benefits found that organizations that use benefits as a tool for recruiting and retaining talent reported better overall company performance and above-average effectiveness in hiring and retention compared to organizations that did not.

Arkansas Blue Cross and Blue Shield And the LIFE USable We’ve partnered for more than 40 years to help Arkansas businesses deliver benefits that make a difference. click over here Learn more about employer benefits.

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